The global tourism industry is targeting the Latin American market in a major way even as it hopes the regional economies will see better growth, boosting travel to destinations world-wide.
The third WTM Latin America, held at Expo Centre Norte, Sao Paulo, Brazil, from April 22 to 24, was a huge success with more than 1,400 companies from all over the world taking part. The event witnessed a record 5,500 visitors, an increase of 21 per cent over the previous year, said Reed Exhibitions, the organiser.
There were the neighbouring Latin American states; the nearby US and the Caribbean countries; and the not-so-near Europeans and Africans and the far away Middle East states, India and the Far East nations.
They were all there to promote their travel products and destinations to the well-heeled and the growing number of middle-class Brazilians, who still complain about the economy and the dollar rate but hope to make their long-awaited foreign trip before the 2016 Rio Olympics when all eyes will be on Brazil.
Amongst the visitors there were almost 1,500 buyers and hosted buyers from Brazil, Latin America and rest of the world who negotiated business deals.
There was palpable enthusiasm among exhibitors as they put up some eye-catching stands. Business and culture mingled as tourism boards showcased their countries to the delegates. The calligrapher at the Moroccan stand had people queuing up to have their names written by him all day long. Brazilian beauty queens and Caribbean models drew attention as travel operators did great business. As the show wound down, Cuban dancers kept the visitors spell-bound.
Speed Networking, one of the many networking events at the exhibition, brought together almost 100 Brazilian and international buyers who met with 350 local and international exhibitors over five-minute meetings.
A large travel tech programme also took place with Google and Tripadvisor headlining sessions.
Craig Moyes, portfolio director of Reed Travel Exhibitions, said the WTM Latin America was on its way to becoming a leading global event.
“I hope this event matches the success of WTM London and the ATM in Dubai in the years to come,” Moyes said.
Lawrence Reinisch, exhibition director, WTM Latin America, said: “We’re absolutely delighted with the visitor, buyer and media attendance figures for this year. These figures demonstrate the power and importance of WTM Latin America to the industry and the role it plays in facilitating business for the sector.”
Travel and tourism directly contributed more than $142.5 billion to Latin America’s gross domestic product (GDP) in 2013 and by 2024, it is expected to reach $600 billion, reports said.
Inbound arrivals to Latin America are expected to increase by 4.4 per cent CAGR (compound annual growth rate) between 2013 and 2018, according to the first WTM Latin America Trends Report released at the event in association with Euromonitor International.
After under-performing the global average over the last several years, the region is expected to outperform the world average of four per cent, said the report.
In 2013, Latin America registered a total of 84 million arrivals, representing three per cent growth over the previous year. Mexico accounted for 30 per cent of total arrivals in the region, mainly due to its proximity to the biggest source market for Latin America – the US.
Brazil followed with an eight per cent share of total arrivals. Visa requirements, crowded flights, bad infrastructure and language are strong barriers to growth for international tourism to the country, the report said.
The top five countries of Mexico, Brazil, Argentina (seven per cent), Dominican Republic (six per cent) and Chile (four per cent) accounted for almost 55 per cent of the total inbound traffic.
Economic recession in the main source markets (North America and Eurozone) negatively impacted arrivals in Latin America between 2008 and 2013. However, the stablisation of the economy in those regions is expected to increase arrivals in Latin America over the following five years, the report said.
The rising income levels in the region will also boost the intra-regional tourism, said the report. “Latin Americans prioritise travel above all else when it comes to discretionary spending,” it added.
Brazilian inbound tourism will benefit from increased awareness underpinned by the 2014 Fifa World Cup and 2016 Rio Olympics, it added.
It also said family trips are becoming more popular with Latin American tourists and it is the most common way for Argentinians and Brazilians to travel abroad.
The study found that while in emerging markets, luxury travel remains a status symbol for the rich, in mature luxury markets have shifted towards authentic experiences. There are growing numbers of Brazilian luxury consumers keen to experience this type of luxury.
The challenge for Brazil and its tourism industry is to learn from the mistakes made during the 2014 World Cup as the Rio Olympics nears. It must keep prices within limit and not to dissuade sports enthusiasts and travellers by pricing facilities and services too high, industry experts said. The next WTM Latin America will take place from March 29 to 31, 2016.
By Sree Bhat